Shares fell 2.6 percent after the Madrid-based company
reported a 19 percent increase in net income to 790.5 million
euros ($1.1 billion), below the 906.3 million-euro average in a
Bloomberg survey of 16 analysts. In 2012, Mapfre took more than
400 million euros of charges to clean up its balance sheet.

Earnings from international divisions in countries from
Brazil to Turkey now account for 72 percent of profit, enabling
Mapfre to offset the impact of weak demand for insurance
products such as auto coverage in its home market. Even so,
weakening currencies, especially in Latin America and Turkey,
had a “very significant” impact on results, the company said.

Pretax profit at Mapfre’s international business rose 15
percent from a year earlier to 894.7 million euros. Profit by
that measure from Spain and Portugal rose 3.1 percent to 552.5
million euros as premiums fell an annual 8.8 percent.

Currencies in emerging markets from Latin America to Turkey
have tumbled as the Federal Reserve began taking steps to
withdraw the monetary stimulus that fueled investment. The
Argentine peso has weakened 37 percent against the euro in the
past 12 months, while the Brazilian real has dropped 20 percent
and the Turkish lira 21 percent.